THE COURTAULD IP4STTTUTE OF ART FUND CHARtrY REGISTRATION NO. 288509 R•port •nd Flnondal Statoments For the year ended 31 July 2022 THE COURTAULD INSTITUTE OF ART FUND Report and Financial Statements Contents Page Trustees, ￿￿)rt 14 statement of trustee5' reswnslbllltles ITrJependent auditor report to the trustees of The Q)urtauld Institute of Art FuTrJ ststement of financlal actlvltles Ba￿n￿ sheet io Notes to the flnanclal statern￿ts 11-14 THE COURTAULD INSTrnITE OF ART FUND TRUSTEES. REPORT The trustees are pleased to present thelr and audoted financial statemerrts for the year en(1ed 31 July 2022. REFERENCE ANO ADMIMISTRATIVE DETAILS Charty Name.. Charity NUMI￿r. The Q)utsukJ Institute of Art Fund (Ihe Fund? 288509 Prlncipal Addres5'. Somerset H¢￿Se, Strand. London, WC2R ORN TRu￿EEs The trustees who held office throughout the year and Sin￿ year end are listed belN. Profesg)r Deb)rah Swallow {Chalrman) Profes>)r Alixe Bovey Lila Kanner {appointed 16th tkcemter 2021 arKI reg9ned 25￿ Aprtl 2022) PROFESSIONAL ADVISORS Lloyds TSB, 22-24, Southampton St, London, WC2E 71A Royal Bank of Scotland, London Drumrnonds, 49 Charlng Cross, London SWIA 2DX KPMG LLP. 15 Canada Square, London E14 5GL STRUCTURE, GOVERNANCE AND MA14AGEMEtir The Courtauld Instliute of Art Fund wa5 establlshed as a charity by a Deed of Tru* dated 20 December 1983 and 15 registered as such with the Charity commi￿10n. A5 Set out in the Trust t)eed, trustee5 are apOnted by the existSng trustees and confirmed In post at the annual general meeting IAGMI. The Fund is managed by a board of trustees who rneet on an annual basis to agree a grant to the Courtauld Institute of Art {Ihe Institute? ￿cOrdIng to the wishesof donors to the Fund. All of the cufftnt tru5tee5 are current ernployees of the Insts'tute and are exFerienced charity officials. As such, no ￿lIcY for the training of trustees currendy exlsts twond that in Pla￿ for new trustee5 of the Insbtute rtself. This will be reviewed a5 and when an independent trustee Is apwnted in the future. The tnard of trustees administers the charity. The board meets annually at its AGM and more [￿Uen￿y on an informal basis during the year to dlscuss Issues as they arise. Al of the cur￿nt trustees are current or fornier employees of the Insbtute. The Fund has no direct staff, with bll adminlstrative and other w¥ork in Conn￿lon with the Fund being carried out by employees of the Co¢Jrtauld Institute of Art in the Th)mal course of their ernployment wrth the Instbtute and at no additi'onal cost to the Institute. THE COURTAULD INsrrruTE OF ART FUND TRUSTEES, REPORT As part of the Courtauld InSt￿ute of Art group of cthmpanies, the risks faced by the Fund are conshlered by the Governing ￿lar￿ of the Instrtute. The trustees have a risk management strategy which comprlses.. an annual rewew of the risks the tharity may la￿. the estsblishrnent of systems and pr(Kedures to mitigate those risks identified in the plan,. and the itnplementation of pro￿ureS delgned to minirni5e any potential impatt on the charity should tho* risk5 materialise. The key rlsks faced by the Fund are.. the fallure io reach fundraising tsrgets, leavlng the fund unable to fully 5UPPOrt the work of the instiiute. and the failure lo properly record restrictions pla￿ donations by indwidual donors, resultrng In funds belng put to o purpose that does not match the wishes of the donor. The Fund was established in orijer to ralse funds for the Courtauld Instltute of Art, an exernpt charfty, and continue5 to be used for that purpose. The current trustees are all senior current employees of the Institute. As such the Fund conslders Itself tc* be a part of the Courtauld Institute of Art group. s￿ Enterprises Ltd Is a wholly owned trading subsldiary of the Courtauld Insbtule of Art. Professor Deborah Swallow and Dr Emst Vegelin van Claertergen were Directors of scr Enterpri5e5 Ltd throughout the year. The Fund dld not enter into any transathon of any kn'nd wbth s￿ Enterprises Ltd during the year. OBJECTIVES AND AcfivInES FOR THE PUBLIC BEMEFtr (Xr objertlves are Set 50 as to refiect our alm of Supp)￿ng the Courtauld Instthte of Art, as noted abjve. In setting our objeth'ves, our trustees have given careful consideratyon to Ihe Charlty Commission's general guklan on public benefit and in particular to its supplementsry pU￿1C ￿efit guidan￿ on advancirvJ educats'en. Under the tem)s of the Trust Deed, the main obleLlives of the Furbj are as follows.. The advancement of public educatlon In the history of art and archltecture, The ca￿, conservation and restoration of works of art for the public benefit. The accommodatlon and public display of works of art. 4. The increase of pU￿1C knowledge and appreaètlon of art and arch￿Ure. 5. The advan￿ment of such other charrtable purposes as May Irom ￿me to tr'me be prornoted by the In￿tute. The prlnapal methryl by which the Fund seeks to achieve these aims and provide public tenefit 15 by raising fund5 to support the artwities of the Courtauld In5tstute of Art, which in turn provides Higher EdUCat￿n courses and public conferen￿, lettU￿S and sympxiga in the history of art & architecture and on the subjert of art cOnseNat￿n. conserves and display5 original works of art in rts public galleryi and engages with other museums, gallerEs, higher education in5tituYons, schools and government department to exchange knowledge and Sha￿ experien￿5 on the subject of art and architecture. THE COURTAULD INSTrruTE OF ART FUND TRUSTEES, REPORT ACHIEVEMENTS AND PERFORMANCE Over the past year, the Fund raised £1,870,51Q for the purrMW of supw)rting the w￿k of the Courtauld Institute of Art and made a grant to the Institute of £1,859,596. This included a nUffl￿r of grants for the Courtauld Gallery in support of public education prograrnmes and staff costs, and other grants in support of student scholarships, conseNation work, the Institute's libraries, Courtauld Connects Projert a5 well as unrestricted grants to be directed to those areas the Inskntute itself consders to be of greatest need. The funds ralsed have enabled the Institute lo meet its objectives by conseNing and displaying damaged and fragile works of art that might otherwise be lost; engage wlth schcds and mernbers of the public through gaI￿ry tours, school visits and public lecture5 and provide scholarthips to enable students that might otherwise be unable to attend to study al The Cojrtauld. FINANCIAL REVIEW The Fund Is wholly reliant on donatlons frorn other trusts, foundations and members olthe public to meet its running Costs and fun(i the donations made by the Fund toThe Courtauld. The results for the year are set o¢Jt In the Statement of Financlal Actiwties on page 9. Total operating income for the year was £1,870,510 {2020-21.' £2,771,923). Thls Included £1,870,510 in donabons Indudlng recoverable gift ald12020.21.. É2,771,923). TtrE Fund Incur￿ costs of £10,914 during the year in the form of audlt fees and bank charges (2020-21 E7,1771. Taking Into account these ￿5uts, trustees have approved a grant to the Insts'tute of £1,859,596 (2020-21: £2,764,746). The Courtauld Insb'tute of Art set5 annual fundraising targets for Scholarships, Endowrnents other revenue dDnatlons which In turn determlne the targets for the Fund as the wincipal fundraisng vehkle for the Institute. The re5uts for the year to 31 July 2022 were conslstent wlth plans. The Fund ralse5 income through voluntsry dtsnations from indivlduals as well as from other Trust5 and Foundations, The charty will make grants to The Courtauld Institute of Art In a manner conslstent wrth the wishes of the 0￿gInal donor and the chanty's pUrr￿se5 as outlined above. AJI funding is subiett to wiew by the Board of Trustee5. The Fund believe5 that it would be inappropriate to hold on to fvnds any longer than is ab501utely necessary and has lrttle need for permanent free reserves. The trustee5 aim to maintain a level of free reserves Idefinèj as income that Is not yet spent, commrtted or desi9natsd) in Un￿StrICted fund5 of between E30,000 - £60,OCK) which 15 considered to be sufficient for its needs. However, at 31 July 2022 the Fund's free reserves stood at £500,(MJO due to the bequest of artY￿rk valued at £450,000 recelved in the 2016117 Financial Year and retsbned the fund at year end. THE COURTAULD INsrmiTE OF ART FUND TRusfEES' REPORT PLANS FOR FimJRE PEIUODS The èlm for the future of the Fund is to conb'nue to gjpport the objectives set OLrt on page 2 of this rep)rt. It 15 the intention of the trustees that the Fund will achieve these objertjves by frdcilitating the hjndraising artivities of the Insfjtute to enable the Institute to fcKus on delivering its full range of projrammes and aLtivrtÈs to its students and to the publK at large. Individual donatlons will be made to the Fund, and the FuThJ wlll then In tum make a slngle donat￿￿ to the Institute on behalf of the individual donors. The effects of the war Ukraine, the c05t of Ilvlng crfsls and the ongolng Smpact of Brexit on inajme generation remain Un￿￿trIn. It is not P055ible to fully quantify the ImpaLt on the Fund. Courtauld Connects set5 Out our than5 to redevdop our home at Somerset H¢)use and reconstnKt t￿r busi￿5$ model to secure a sustainable future for The Courtsuldi great￿ improved ￿cesSIbIlIty and delivery of an Art for model of enga9ement. AUDITORS KPMG LLP have expressed their willlngness to contlnue In offlo a5 auditor5 and a resolutth proposing thelr reappointment wlll be prcoosed at the ft>rthcOMl￿ Annual Genernl Meeung. Approved ty tt* 8oard of Trustees and ￿gned ￿ thelr behalf >lfLJ PrOfey￿r Detorah Swallow Chalrman Registered Offlce: Somerset House Strand London WC2R ORN THE COURTAULD INsrrruTE OF ART FUND STATEMENT OF TRUSTEES. RESPONSIBILrrIES IN RESPECT OF THE TRUSTEES, ANNUAL REPORT AND FINANCIAL sfATEMENTS ststement of Trustees. re5pon5ibilities in re6Pert of the Trustses. annual report and the flnancl•l statsmefftts Under the trust deed of the charty and charity law, the trustees are responsbble for preparing a Tru5tees' Report and the financial statement5 in accordan￿ with appllcable law and regulatlons. The trustees are required to p￿pare the financial statements in accordano with UK Accounting Standards, indudlng FRS 102 The Financ￿/ Rewrtinq StdndardapplKa￿e in the UKandRepublK ofIreland. The f+nancial statements are required by law to give a true and falr view of the state of affaits of the charty and of the incoming resource5 and appI￿a￿On of resource5 for that ￿rIcKl. In preparing these financial statements. generolly accepted accounting prath￿ entai15 that the trustees: select sultable accounting FKAicies and then apply them consistentlv make judgements and estimates that are reasonable and prudent; State whether applicable UK Accountlng Standards and the Statement of Recommended Prattl￿ have fdlowed, subject to any material departts￿s disclosed and explained in the financial statements; stste whether the financlal ststements comply with the trust deed. subjett to any materlal deparbjres disclosed and explained in the financlal statements. asse55 the charty's ability to conbnue as a going Con￿￿, dbsclosing, as applicable, matters related to golng concern,. a use the goirrfJ con￿rn basis of accoundng unless they elther intend to I￿uldate the charlty or to cease operations, or have no reali*K alternative but to do 50. The trustee5 are required to art In accordan￿ with the trust deed of the charlty, wlthin the framework of trust law. They are responsible for keeping accountsng records which are sufficient to show and explain the charity's Iran5attlons and d15closo at any time, with reasonable atcuracy, the flnancial posltion of the charlty at that ts'me, and to enable the trustees to ensure that, Whe￿ any ststernents of accounts are prepared by them under seclon 132{11 of the Charitie5 ALt 2011, those statements of accounts comply with the requlrements of regulatlons undef that provisic*n. They are responsible for Such internal control a5 they determine is necessary to enable the preparatlon of financlal 5tstoments that are free fmm material misstatement, whether due to fraud or error, and have 9eneral responslbllity for tsklng 5uth steps as are reasonabw open to them to safeguard the a￿ets of the charity and to prevent aTKI detert fraud and other Irregularities. **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE COURTAULD INSTITUTE OF ART FUND** **6** ## **Opinion** We have audited the financial statements of the Courtauld Institute of Art Fund (“the charity”) for the year ended 31 July 2022 which comprise the Statement of Financial Activities, Balance Sheet and related notes, including the accounting policies in note 1. In our opinion the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 July 2022 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charity in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. ## **Going concern** The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the charity or to cease its operations, and as they have concluded that the charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). In our evaluation of the trustees’ conclusions, we considered the inherent risks to the charity’s business model and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period. Our conclusions based on this work: - we consider that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate; - we have not identified, and concur with the trustees’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for the going concern period. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charity will continue in operation. ## **Fraud and breaches of laws and regulations – ability to detect** ## Identifying and responding to risks of material misstatement due to fraud To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: - Enquiring of trustees, the Courtauld Institute of Art audit committee and the Courtauld Institute of Art’s internal audit and inspection of policy documentation as to the Group’s high-level policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud. - Reading Board and Audit Committee minutes of the parent. **7** - Using analytical procedures to identify any unusual or unexpected relationships. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. As required by auditing standards, and taking into account possible pressures to meet fundraising targets, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that donations are recorded in the wrong period and the risk that management may be in a position to make inappropriate accounting entries. We did not identify any additional fraud risks. We also performed procedures including: - Identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted by senior finance management and those posted to unusual accounts. - Assessed donations recorded around the year end to determine whether there was sufficient certainty of receipt at the time they were recognised. Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the trustees and discussed with the trustees the policies and procedures regarding compliance with laws and regulations. As the Charity is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. The Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and charities legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Whilst the Charity is subject to many other laws and regulations, we did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements. Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. ## **Other information** The trustees are responsible for the other information, which comprises the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. **8** Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if: - based solely on that work, we have identified material misstatements in the other information; or - in our opinion, the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements. We have nothing to report in these respects. ## **Matters on which we are required to report by exception** Under the Charities Act 2011 we are required to report to you if, in our opinion: - the charity has not kept sufficient accounting records; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. We have nothing to report in these respects. ## **Trustees’ responsibilities** As explained more fully in their statement set out on page 5, the trustees are responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. ## **The purpose of our audit work and to whom we owe our responsibilities** This report is made solely to the charity’s trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Fleur Nieboer** ## **for and on behalf of KPMG LLP, Statutory Auditor** Chartered Accountants KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 15 Canada Square London E14 5GL 06 February 2023 THE COURTAULD INSTtniTE OF ART FIJND STATEMENT OF FINANCIAL AcrIvrrIES 31 JULY 2022 Not•s Unrestrlcted Funds Restrl¢ted Fund5 Year ended 31 July 2021 Total 2022 INCOMING RESOURCES fun6s.' DOna￿on$ and Legacies.. Donations (Inc recoverable glft akj) Other trading athvltles: Commerclal I￿orne 253,916 1,616,592 1.870,510 2,771,923 Total income and endowments 253,918 1.616,592 1,870,510 771,923 EXPENDITURE ON Adrninlstratlon costs (4,914) (4,9141 12,817) OHrltableattlwtts.' Acadernic and Student SuP￿rt Conservats'tjn funds Gallery funds Library Courtauld Connects 1289,2541 (1171 {442,1981 1289,2541 {1171 {442,1981 (326,642) (10,155) (406,986} {88,S41) (1,471,000) (131,111) {564,2171 {168,6961 15,8101 (146,3001 {564,2171 {168,6961 15,8101 {146,3WI {243,0041 16,OC(JI Public Prograrnrnes Membershlp Research (65,014) (265,297) 14,360) General funds Supwrt Costs 1243,0041 {6,OCQ) Totsl re￿￿r￿S expende 253 918 161fj $92 771923 NE[ MOVEMENT IN FUNDS IN THE YEAR FUND BALANCES BROUGHT FORWARD rAL FUNDS CARRIED FORWARD l incomiThJ and outgoing re50urce5 derive from COn￿nuing operation5. The charty has no gain5 or losses other than those recrpJnised in this statement of financial activrtie5. All of the charitsble grdnts detsiled above have teen made to The Courtauld fnstitute of Art in accordan￿ with the wtrshes of the donors. The accompanyiro nctrs on pages 11 to 14 form an integral part of these financlal ststements. THE COURTAULD INSTmiTE OF ART FUND BALANCE SHEET 31 JULY 2022 io 2022 2021 NON-CURRENT ASSETS Heritsge Asset 450,0(J) 450,OCIJ 450.C4)0 450,CLIO CURRENT ASSErs Debtors 74,726 67.380 Cath and Cash Equivalents 155,933 139,250 CREDrroRS: •m(trunts Iling due wlthln one y••r 105 933 NET CURRENT ASSErs TOTAL ASSETS LESS CURRENT LIABIUTIES- NET ASSETS FUNDS Income fund# Restricted Unrestricted TOTAL FUNDS 500 000 TW financial statements were approved by the Board of Truths on and &gned on thar khair 34a& Profes%)r Deixjrah Swallow Chairmèn The Kcompanylng notes on pages 11 to 14 form an Integral part of these fina￿￿1 *atements. THE COURTAULD INsfITUTE OF ART FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 li ACCOUNTING POLICIES {a) Basis of preparation The accounts lfinanck715taternents) have been prepared in attOrdan￿ wth the Ststement of Recommendetd Prattice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Rwrting Standard applicable in the UK and Republic of [￿land (FRS 1021 issued in October 2019 and the Financial Repjrting Standard applicable in the un￿ed Kingdom and Republic of Ireland IFRS 1021 and the Charities Art 2011 and UK c￿nerallY A¢￿pted Pra£ti￿ as rt applies from l January 2015. The financial statements have been prepared to gfve a Irue and fair. view and have departed from the Charities (Accounts and Reports) Regulations 2008 onty to the extent requlred to provide 3 'true and fair. view. Thls departure hès involved following the Charitie5 SORP IFRS 1021 iswed in October 2019. The Fund ha5 taken èotrantage of the exemption in Financial Reptjrtlng Stsndèrd chapter l from the requirement to p￿lUCe a cash fk)w staternent on the ground5 that it 15 a small chadty. The winclpal accounting policies &Jopted in the preparation of the flnancial statements are set out below. Ibl G￿n9 Con￿rn The financlal staternents have been prepared on a golng concern basis which the trustees consider to be appropriate. The Funtl receives donations, transFers them in the forrn of grants and would never grant mre than It receives. The charity wlll have sufficient fuTrJs to meet Its lia￿lItieS over the tsyelv&month period followlng the signing of the accounts. The trus*es therefo￿ contlnue to adopt the goln9 concern bas15 in preparlng the annual flnandal statements. The Fund's attivlties, together wlth the factors likely to affert the futu￿ development, performan￿ and financial Posltlon, are set out in the Trustees, Rep(¥t on pages I to 4, alffig wilh the Fund's objethves, polities and processes for managlng its exp05ure to flnancial risk. (cl Incomlng resources Voluntary income Including legacie5, donations and recoverable glft aid Is retogn15ed when the charity has enl￿ernent to the funds, any performance conditlons attached to the ilem(s) of Income have been met, it Is probable that the income will be received and the amoLJnt can be measured rellablv. {d) Resources expended abilities are recognised as reSoUr￿S expended as 5wn as there Is a legal or con5truLtlve obIlga￿On committlng the charity to the exFendiiure. ￿1 expenditure is accounted for on an accruals basls and has been dasslfied under headlngs that aggregate all costs ￿lated to the category. The charlty uses transparent and accountsble processes to ensure that charitable funds are dlstributed effethvely. Grants are made In Complian￿ with the charity 5 grant rnaklng poll￿. Grants are recognlsed when speo'fic and unconditional commrtment to provide grant funding 15 given and this has been communicated direcdy to The Courtauld Inst￿￿te of Art, gi￿n9 rise to a constructive Obl￿atiOn. G0Vemar￿ costs comprlse the costs ol runnlng the charlty, including the external a￿lt fee and all costs to compw ￿th statutw requirements and public accountstility, if any. le) Financial Instruments Financlal Instruments are classified and accounted for according to the gjbstance of contractual arrangements, a5 either financlal asset5, finanaal l￿bIlItIeS or equity instruments. (Q Fund 5truthre The charity has a number of rethrted Income funds to accourt for 5ituafjon5 where a donor reQUi￿S that donation (or the incorne generated by that donation) must ￿ Spent on a particular purpose or where f¢Jnds have been raised for a speo'fic purpose. All other funds a￿ unrestritted income funds. The trustees intend to V5e part of the unrestricted funds for the purpose of supFKrtng the work of the Courtsuld In￿tUte of Art. THE COURTAULD INsrtruTE OF ART FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31)ULY 2022 12 (g) Taxation The Courtauld Institute of Art FunLI 15 congdered to pass the tests set out in paragraph I Schedule 6 Finance kt 2010 and therefore it meets the definition of a charliable trust foi UK income tax purposes. Accordingty, the charity Is w)tentially exempt from taKab"on in respect of income or capitsl gains recelved withln categories covered by Part 10 Incorne Tax Act 21J07 or SectK)n 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such incorne or gains are ap￿led exdugvely to charitsble purty)5e5. The charity is not registered ff* Value A(kJed Tax and as such is unable to recover any tax on its purchases. All n￿-recOVerab1e VAT is included wlthln the appropriate expendItU￿ headings. (h) Tangible Fixed A55ets Heiitsge assets valued at £450,OCKJ are capitallsed at the value on acqulltion, where such a valuatK)ll is reasonably obtainable. The last valuabon of the asset ttsjk pla￿ in 2017 and future valuations will then take place every ten years. The assets are not deprecbated &nce th￿r long econornic life and high ￿￿lua1 value rnean that any depreclatlon would not be materbal. LEGAL STATUS OF THE TRusr The trust is a registereJ charty. GOVER14ANCE 2022 2021 Audit fees 6,0 6,0 4,360 4,360 Induded wlthin Audlt fees above are the followlng amwnts re￿1vable by the external audltor.. -Stat45tory audrt fee £5,00012021 £3,633) The Fund had no employees during the year or prlor year other than twstees. No trustees received any remunera￿1)n or expense5 frorn the charity. DEBTORS 2022 2021 Glft Aid r￿0Verable 74,726 74,726 67,380 67,380 CREDtroRS: AMOUNT FALUNG DUE wrrHIN OME YEAR 2022 2021 Amounts owed to the Courtsuld Institute of Art Accruals 99,933 37,890 105,933 89,250 THE COURTAULD INsfITUTE OF ART FUND NOTES TO THE FINANCIAL sfATEMENTS YEAR ENDED 31 JULY 2022 13 Balance as at l August Mew Funds 2021 Grnnts & Admlnlgtr•tion Governance Translers Balance •s at 31 July 2022 Restrlctod Funds Academic & Student support Conservation Funds Gallery Funds Courtsuld Connects Membership PublK Pmgrammes Rescarch 289,254 IL7 1289,2541 11171 {442,1981 1564,217> {5,8101 (168,6961 146 300 442,198 564,217 5.810 16B.696 1.616,592 1616 591 Unrertrktd Fund# Gallery Funds Herknge Asset Annual Fund General Fvnds 25,000 (25,OLM)) 450,OLXI 50.0(IJ 450,000 49,830 170 228,518 4CK) (217,774) 230 {4,914) 16,000) 153 918 500 000 500 000 1870 510 1859 596 500 000 New Fund5 are stated Indu￿Ve of recoverable glft ald and bank Inte￿st where applkable. Funds are treated as restricted where the donor has specified a particular purkv5e for the use of the funds accordlng to the category detslled in rth 6 above. The Annual Fund detailed in note 7 represents funds given In response to the Annual Fund apFeal where the donor has requested that their donation be applied wherever the need is greatest. Adminlstrab'on costs ￿late to bank and crejit card charge5 connectsj to the prc￿￿n9 of donatl¢)ns. FUIID ACCOUNTING UnrestrSLted funds are available for use at the dtscretion of the t￿Stee$ In furtheran￿ of the general objectives of the charty. Restricted funds are subjected to re5trttbns on thdr expendtture imposed by the donor or through the tsms of an appeal. 9. FIXED ASSETS Herlt•ge Assets Total VJlu•tlon As at l August 2021 As at 31 Juty 2022 450,000 450,000 450,OCxJ 450,000 10. CAPITAL COMM￿mENTs There were no capttal commitn*nts at the yearend (2021 NIL). THE COURTAULD INsfrniTE OF ART FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2022 14 11. RELATED PARTY TRANSAcfioNS All the trustees are directors, cUr￿nt or former employees of the Courtauld Institute of Art (refer to note 13). No Trustee or Ftrson connected to a trustee received remuneration or other benefit as a result of their work for the Fund. Expenses incurred by the Charity for Trustees during the year totalled £NIl {2020-21'. £Nil). Professor Oeborah Swallow made donations of £Nil (2020-21.. £80,000). All funds received on behalf of the Courtauld Instrtute of Art are dlsbursed to the Institute in acccfdarKe wth the wishes of the orlgbnal donor. s￿ Enterprises Ltt1 Ss a wholly owned trading subsidiary of the Courtauld Insb'tute of Art. Profess(x Deborah Swallow and Dr Ernst Vegelin van Claerbergen We￿ Direttors of s￿ Enterprises Ltd throughout the year. The Fund did not enter Into any transartlon of any kind wlth SCT Enterprise5 Ltd during the year, 12. CONTROLLING PARTY The trustees consider that the charity is controlkd by the Courtauld Institute of Art, which It conslders to be immediate and u￿.rnate parent undertaking. The Courtauld Institute of Art 15 a company Ilrnited by guarantee (company no. 44644321 and an exempt charty for the purpM)ses of Charits'es Act 1993. Web site w¥yw.courtauld.ac.uk The Courtauld Institute of Art, whlch Is a hbgher educatSon institutSon, prepares group flnanclal ststements. The charlty is exempt from disclosln9 transactions With its gr￿￿ undertaklngs as it is whdly controlled. 13. sfAFF COSTS The Fund did not empby any staff durlng the year (2020-21.. £Nil). All adrnlnlstratbve and other work in ccffjnection with the Fund wa5 caThied out by employees of the Courtsuld In5tltute of Art In the normal course of their employment wlth the Institute and at no additional cost lo the Institute. On that bals the Institute took the decislon not to recharge costs in conneth.on wtth that work to the Fund.